RIGHTING THE INJUSTICES IN THE EXTRACTIVE INDUSTRY.
CASE STUDY: KARAMOJA AND KWALE REGIONS
COMMISSIONED BY AMECEA PEACE & JUSTICE DEPARTMENT
SUBMITTED BY
TONY MOTURI
TABLE OF CONTENTS
ABBREVIATIONS
AMECEA
– The Association of Member Episcopal
Conferences in Eastern Africa
CSR- Corporate Social Responsibility
DGSM- Department of Geological Survey
& Mines
EIA- Environmental Impact Assessment
EAM- East Africa Mining Company
EITI
- Extractives Industry
Transparency Initiative Standards
FGDs- Focus Group Discussions
IFC- International Finance
Corporation
OECD- Organisation for
Economic Co-operation and Development
PSA- Production Sharing Agreements
ACKNOWLEDGEMENT
The Association of Member Episcopal Conferences in Eastern
Africa (AMECEA) owes immense gratitude and appreciation to various people whose
contribution in various ways made this endeavour a resounding success.
First, we owe a great sense of appreciation to Mr. Tony Moturi,
the consultant who steadfastly carried out this baseline study. For his time,
diligence and incisive analysis, we thank him for using his competence and expertise
to point us in the right direction.
To the participants at the validation workshop who subjected
the initial draft of this baseline study to a rigorous analysis and critic. It
is through their input that this research output became a coherent and admissible
document for our consumption.
We must also thank the AMECEA staff: Programmes Coordinator; Father
Jude Waweru and Pauline Wakibiru, for their invaluable and diligent commitment
to making this a success right from the inception level of the project, to
every step of its management and liaison with the key actors; they made this
process less strenuous.
We are eternally grateful to our project partners, Catholic
Agency for Overseas Development (CAFOD) for their unwavering faith in our work
and their continued and consistent support for it. It is their financial
resource support that ultimately made this project a reality.
To those who played key roles and are not mentioned, it is not
a deliberate omission. We take cognizant and a profound appreciation for your
contribution. It is our pleasure to present this research study report to you
and hope that you will find the contents of immense usefulness and timely.
AMECEA JUSTICE AND PEACE DEPARTMENT
EXECUTIVE SUMMARY
At the heart of economic development,
countries such as South Africa, Nigeria, Democratic Republic of Congo and
recently East African countries have sought to expand their economies largely
from extracting mineral endowments. In South Africa, successes have been
registered with enormous economic growth, while in others, large populations
fight to survive inequities.
This research zeros on the
extractive industry in Kenya and Uganda in areas of Kwale County in Kenya and
Karamoja in Uganda.
It exemplifies the rights of
people eking a life in these areas from the extractive industry, probes the
status quo and establishes the intended interventions in policy and practice.
The study also roots for the
nexus between the efforts of the church in advocacy and the needs for
intervention by other stakeholders outside the daily practices in the mines.
It interrogates the duty
bearers and the primary actors in the industry by looking behind the veil to
identify the policy gaps and individual company activities which are
contributory to the reissues faire in these regions.
The methodology used factored in sentiments of 65 community members 39
in Kwale region in Kenya and 28 in the Karamoja region who live in the
exploration and mining license areas. The data collected through review of
secondary sources (desk review), structured interviews; key informant
interviews; and focus group discussions has been analyzed and verified with the
featured companies; Base Titanium, East Africa Mining Ltd, Jan Mangal Ltd and
DAO Uganda Ltd to build a track towards the final recommendations.
Universal standards are visited upon the finding to establish the
fulcrum on which the mining practices in Kwale and Karamoja should auspices.
It is expected that a more intensive study shall be conducted with the
intent of finding the intricate issues of welfare and labor policies of the
miners and the place of the church in bolstering community awareness and
synergies.
1.0. INTRODUCTION AND BACKGROUND
1.1. The Basis of the Study
Managing natural resources for development is challenging. Many
countries with large endowments of valuable natural resources and strong
governance structures do no better, and often do worse, than less endowed
countries. This recurrent fact has been called the “natural resource curse” or
the “paradox of plenty”. Yet, the natural resource curse is not inevitable.
Some countries have been able to effectively manage natural resources to
advance their development. Problems
abound from community participation, sharing of proceeds from the extractive
industry and injustices meted to workers in the mines as well as land owners on
whose property the mines are found.
A recent World Bank study, Africa’s Pulse,[1] compared
growth of Africa’s resource-rich and non-resource-rich countries between 1980
and 2010. In the 1980s, both sets of countries experienced a virtual stagnation
in per-capita gross domestic product.
Overall, resource-rich countries were unable to harness resource wealth
in the first two decades. Since 2000, however, it has been a different story:
higher growth in all groups, with oil-rich countries in the lead. Despite this
growth, less impact has been felt on reducing poverty levels. In converse,
there has been an increase in the percentage of their population living in
extreme poverty.
Countries in the East Africa region are not an exception either. Most of
these resources have not been used to benefit the local communities. Despite
the wealth associated with mining, most communities wallow in poverty.
With the new discoveries of natural resources in several countries in
the region including Kenya, Uganda and Tanzania- it raises an important
question: Will these windfalls be a blessing that brings prosperity and hope,
or a political and economic curse, as has been the case in so many countries?
It is against this background that AMECEA Peace and Justice Desk sought
to investigate, identify and seek ways to address injustices meted against
communities that leave within the mining belts in Kwale and Karamoja regions.
1.2. Objectives
Through this project, AMECEA Peace and Justice Department sought achieve
the following:
·
Assess the current situation as regards to the
extractive industry in the two countries with a view of identifying areas of
entry and convergence that the Catholic Church could use in its advocacy work
·
Assess the existing community participatory
structures in the extractive industry
·
To establish clear indicators of baseline(s) in
local communities’ participation and transparency of governments and mining
companies that will be used to generate data for evidence based decision making
1.3. Methodology
The baseline survey used a variety of sources and methods to collect the
information. The following techniques were used; review of secondary sources
(desk review), structured interviews; key informant interviews; and focus group
discussions. The participation of women, youth and minorities was specifically
sought in the whole process.
In total the researcher interviewed 65 community members 39 (20 men and
19 women) in Kwale region in Kenya and 28 (16 men and 12 women) in the Karamoja
region who live in the exploration and mining license areas.
The companies featured in this report are Base Titanium, East Africa
Mining Ltd, Jan Mangal Ltd and DAO Uganda Ltd.
The researcher discussed with all interviewees the purpose of the
interview, its voluntary nature, the ways the information would be used, and
that no compensation would be provided for participating.
The researcher sent letters to senior management of each company. Out of
the four companies, only Base Titanium that responded through phone interview
and all correspondence is available in the annexes to this report.
1.4. Study Limitations and Challenges
Cooperation of Government Officials as well as
Company Management: although sufficient inquiries were made to government
officials as well senior managers of the companies who were unwilling to freely
provide for interviews and key documents. The study sought to mitigate this
challenge by seeking more information from the internet and reports from
different organisations on this subject matter.
Time and geographical Constraints: The period allocated for this study was limited comparing the vast areas
that were understudy. It was therefore important for the survey to proceed with
speed by employing means of transport such as hired motorbikes to reach
outlaying locations which were inaccessible by public means.
Budget Constraints: The
survey budget was limited and this necessitated a rethink of the original
research design so as to fit the available funds. Only 4 days of field data
collected could be supported by the available budget. Use of rapid qualitative
methods of data collection (FGDs and Key Informant interviews) was therefore
found necessary. This led to the omission of the mine workers from the study.
On overall, the limitations and challenges did not have any considerable
effect on the quality of data obtained.
2.0. POVERTY AND SURVIVAL
2.1. Introduction
Most potential mine sites in the region are found in places where the
poor live, and they are mostly indigenous peoples. These poor communities have few economic
alternatives and generally survive on subsistence farming. Most of the
residents understand this activity will never get them out of poverty, but also
understand that the wealth underneath their land, if properly harnessed, can
give them the chance to break out.
Kwale County is one of the six counties in the former Coast Province.
The County covers an area of 8,322 km2 of which 62km2 are under water. It is
bordered by Taita Taveta county to the West; Kilifi county to the North;
Mombasa county and Indian Ocean to the East and United Republic of Tanzania to
the South.[2]
The 2009 Population and Housing Census showed that the County had a
population of 649,931 in 122,047 Households where 74.9% of the population live
below the poverty line.
The better off households are concentrated in Kubo and Matuga while the
poorest are concentrated in Kinango and Samburu, and to a lesser extent in
Msambweni Divisions.
The major causes of poverty in the County include the poor infrastructure
development including electricity, roads, telecommunications and water,
inadequate agricultural production due to land tenure problems, poor and
undeveloped agricultural marketing and wildlife menace.
The remote Karamoja region of north-eastern Uganda, stretching across
10,550 sparsely populated square miles, accounts for nearly 10 percent of the
country.[3] It is
home to an estimated 1.2 million people spread across seven districts—Abim,
Amudat, Kaabong, Kotido, Moroto, Nakapiripirit, and Napak.
While the ethnic groups who live in Karamoja are sometimes referred to
collectively as Karamojong,[4] the
majority constitute three distinct large groups: the Dodoth to the north in
Kaabong district; the Jie in the center in Kotido district; and the Karimojong
(comprised of the Matheniko, Bokora, and Pian) to the south in Moroto and
Nakapiripirit districts. Othersmaller groups include the Pokot, Ik, Tepeth, and
Labwor.
2.2. Livelihoods, Marginalisation and Discrimination
Marginalisation is a consequence of a skewed process of the distribution
of scarce resources; it has been interpreted as a process of social exclusion
from the dominant socio-economic, cultural and political structure.
One of its features is manifested in land. Land ownership is a major
problem facing the people of Kwale
where most land owners do not have title deeds. In addition, there is a large
proportion of the population without land while others are living as squatters
in their own ancestral land after grabbing/allocation hence farmers are keen on
developing their land (which would increase efficiency and production) due to
fear of losing their investment.
The situation has been exacerbated by poor infrastructure development
such as roads, provision of water and electricity, low agricultural production
due to land tenure problems, poor and underdeveloped agricultural marketing,
poor agro-industry base, vagaries of nature such as droughts and floods.
The peoples of Karamoja traditionally survive largely through a
combination of pastoralism, agro-pastoralism, livestock-herding, and
opportunistic agriculture to maximize the unfavourable environmental conditions
and low annual rainfall. They occupy semi-permanent manyattas, the center of
agricultural livelihoods, while cattle are traditionally kept in mobile or
semi-mobile kraals. Failed or poor crops have occurred approximately one out of
every three years, making livestock products an essential source of sustenance.
Migration is a key element of this livelihood, allowing for the movement of herds
between pasture areas in response to environmental pressures. Movements by some
groups reach into Kenya and neighbouring regions of Uganda.
Successive Ugandan governments have viewed Karamoja as “backwards”
compared to the rest of the country, largely because of the reliance on
agro-pastoralism. The Idi Amin regime subdued the region by force, and
subsequent former Prime Minister Apolo Milton Obote—famously quoted as having
said “We shall not wait for Karamoja to develop”—created the Karamoja
Development Agency to try to tackle development in the region. Government
pressure to modernize and transform Karamoja continues in current political
discourse.[5] In March
2009, when President Yoweri Museveni appointed his wife, Janet Museveni, as
minister of state for Karamoja, he spoke of the need to “develop one of the
backward areas” of Uganda.[6] Mrs.
Museveni herself has spoken of needing to transform “the primitive and poor
quality” lives in Karamoja.[7]
Despite government efforts to centrally control the peoples of Karamoja
and “transform” their traditional lifestyle, infrastructure and services in the
region, including schools, health centers, potable drinking water, roads, and
many other facilities, are scarce. Large swathes of Karamoja are not yet on the
national power grid.[8]
2.3. Poverty, Food Insecurity and Environmental Degradation
The mega project in Kwale, apart from resettling the displaced people, has
over time destroyed indigenous Kamba and Digo subsistence farming. This in
essence means the project will affect most fertile lands in the County that
could no longer be cultivated as a result of the profound changes to the soil
structure and as a consequence this will exacerbate food insecurity in the
area. It will also have negative impact on the biodiversity of the area and
there are serious concerns about other environmental impacts that are yet to be
settled to the satisfaction of all stakeholders.
Extraction activities would also cause radioactive impacts, as large
quantities of radioactive uranium and thorium were detected in the titanium
deposits.[9] According
to reports, the deposit contained 309 ppm 9parts per million) of uranium and
143 ppm of thorium which, if extracted, would be potentially dangerous for
human health and the environment.
The project would alter the local ecosystem, jeopardising the survival
of several species already at risk, such as the Colobus monkey.
Karamoja has the lowest human development indicators in Uganda, and
approximately 82 percent of the population lives on less than $1 a day, whereas
the national rate is 31 percent.[10] The
region’s rough terrain and unpredictable rainfall have, in the past, resulted
in severe climate variability, and in turn contributed to the region’s extreme
poverty.[11]
In 2006 there was serious drought; a combination of a prolonged dry spell and
flooding in 2007; another drought in 2008; and 970,000 people were in need of
food aid in 2009.
Furthermore, growing environmental problems are having a greater impact
on the precarious position of poor households. Climate change, deforestation,
soil erosion, and desertification are all impacting harvest and production
capacity of agro-pastoralists.
Entrenched poverty and environmental variability has, over the last
generation, increasingly pushed people into artisanal and small-scale mining
for the region’s minerals, particularly gold and marble, for survival.
A June 2013 food security analysis, led by the Ministry of Agriculture,
Animal Industry and Fisheries, revealed that up to 975,000 people in Karamoja
face serious levels of food insecurity, while 234,000 more cannot meet their
minimum food needs, and some districts recently experienced acute malnutrition
rates.[12]
3.0. LAND AND RESOURCE RIGHTS
3.1. Right to Land and Development
Indigenous peoples have the rights to “own, use, develop, and control
the lands, territories and resources that they possess by reason of traditional
ownership or other traditional occupation or use, as well as those which they
have otherwise acquired,” and to determine their own development priorities and
strategies.[13]
In order to realize these rights, states are required to give legal recognition
and protection to these lands, territories, and resources, with due respect to
the customs, traditions, and land tenure systems of the indigenous people
concerned.[14]
Under the right to development, the Kenyan and Ugandan governments are
obligated to ensure that the people in the mining areas are not left out of the
development process or benefits. According to the African Commission on Human
and Peoples’ Rights, the right to development is both constitutive and
instrumental, and a violation of either the procedural or substantive element
constitutes a violation of the right to development.[15] The
procedural element requires active, free, and meaningful participation in
development choices, free of coercion, pressure, or intimidation.[16] The
substantive element should include benefit sharing, improve the capabilities
and choices of people, and is violated if the development in question decreases
the well-being of the community.[17] The
combination of these elements should result in empowerment.[18]
In Kwale County, the inception of the mining project was bound to affect
landowners located in Mwaweche and Kidiani locations and squatters located in
Ramisi Sugar Estate. It is estimated
that ther are about 450 households that have been affected. Of these, 25% are
land owners with title deeds and 75% are squatters.[19] The
average household size is about seven people per household, which means that
approximately 3000 individuals have been affected.
According to Base Titanium,[20] various
phases of resettlement have been undertaken since 2006, each conducted
according to its own Resettlement Action Plan (“RAP”) prepared and implemented
in collaboration with local committees including representatives of directly
affected communities. Compensation was paid for land, agricultural crops,
forest trees, structures and graves. Additionally requirements for livelihood
replacement strategies and replacement land were provided. These RAPs were
prepared in compliance with international best practice as stipulated in the
IFC Performance Standards.
Affected households included 381 in the Special Mining Lease
("SML"), 112 associated with the Mukurumudzi Dam and 86 in the access
road and water pipeline routes. Of these a total of 486 were physically
relocated.
3.2. Voices of the Locals on Proprietary Rights
The Constitution of Kenya guarantees citizens the right to own property[21] and the
State shall only take over land if it is for public purpose or in public
interest and this should be accompanied by prompt payment and just
compensation.[22]
Regulation of mining is based on the fact that all the natural
resources, including titanium, existing in their natural state, are vested in
the national government. As such, the national government is the body
responsible for the conduct of mining operations in the country including
licensing, exploration and mining. It has, however, emerged that the management
of mineral resources, especially exploration and mining, poses great challenges
for the state and local communities.
In Kwale, the locals whose land was acquired for mining purposes were
paid ksh 80,000 way below the market value as it relied on valuations done in
the 1980s.[23]
The initial agreement was to be given alternative land on top of monetary
compensation.
Other displaced persons were resettled in land occupied by squatters
which required the new settler to pay for the existing development that
included farm structures, coconut trees etc
The displaced people were promised jobs depending on their
qualifications where majority were considered for casual jobs while outsiders
benefitted from more formal jobs.
There is noise pollution caused by excavators and dust pollution as the
forest cover has been depleted to pave way for excavation.
On corporate social responsibility, the company has invested in social
amenities such as health centres and schools but locals claim they have been
built far away from the affected persons.
In Uganda, the 1998 Land Act and the National Environment Act of 1995
recognize customary interests in land, though the government can acquire land
in order to control environmentally sensitive areas, thereby usurping customary
land rights of indigenous groups. The
National Environment Act does highlight that environmental management should
include maximum participation by the people, effectively requiring the
consultation of indigenous peoples prior to the gazetting of their land.
Uganda’s 2013 National Land Policy contains very progressive language
regarding the rights for minorities, and more specifically for customary land
owners. The policy identifies ethnic minorities as “ancestral and traditional
owners,” and goes as far as to say that even though ethnic minorities are the
“users and custodians of the various natural habitats,” that they are “not
acknowledged even though their survival is dependent upon access to natural
resources.” The policy acknowledges that
the establishment of national parks and development of regions, including
through mining and logging, “often takes place at the expense of the rights of
such ethnic minorities.” It calls on the
government to protect the rights to ancestral lands of ethnic minority groups
and give them prompt, adequate, and fair compensation for displacement by
government action.
In Karamoja unfulfilled promises to community such as schools,
hospitals, boreholes, jobs, scholarships and money in exchange for their
compliance abound. Exploration has continued and communities have yet to see
the promised benefits that were supposed to help mitigate current and future
3.3. Free, Prior and Informed Consent
States have a duty under international law to consult and cooperate with
indigenous peoples through their own representative institutions in order to
obtain their free and informed consent. This is supposed to occur before the
approval of any project affecting their lands or territories and other
resources, particularly in connection with the development, utilization, or
exploitation of mineral, water, or other natural resources. This duty is derived from indigenous peoples’
land and resource rights, discussed above. States must also provide effective
mechanisms for just and fair redress for any such activities, and appropriate
measures shall be taken to mitigate adverse environmental, economic, social,
cultural, or spiritual impact.
It is sometimes contended that compulsory acquisition of property or
eminent domain takes precedence over free, prior, and informed consent rights.
To the contrary, laws regarding compulsory acquisition must, like all other
laws, respect human rights including indigenous peoples free, prior, and
informed consent rights.
In Karamoja, mining companies have consistently failed to secure free,
prior and informed consent from the local communities before embarking on their
operations on communal lands.
3.4. Community Participation
Poverty and environmental problems in these regions persist simply
because poor people and environmental concerns remain marginalised by and from
those in power. Poor people are unable to access resources, services and
political processes; in effect, they are excluded from the institutions and
benefits of wider society.
Decision making built on the pillars of access to justice, not only gives
an opportunity to the public to make informed choices and influence decisions;
it also creates a stable and predictable investment environment for business
that has a ripple effect on the well-being of the locals.
3.5.
The Role of the Church
The church has a cardinal role in defending the rights of the less
privileged in society. Over the years, the church has become the voice
advocating for social justice and good governance in society. The Catholic Bishops in Uganda issued a
communiqué requiring Parliament to put the necessary structures, policy and
legislative framework to regulate and manage the mining sector as a priority.
The church has also called upon the central government to be transparent at all
times when negotiating and signing of the production Sharing Agreements so as
to boost the ownership. We believe the church needs to go further than this by
using its well established structures in educating the masses on their rights.
4.0. THE LEGAL FRAMEWORK
4.1. Kenya
a)
The Constitution of
Kenya
The Constitution of Kenya 2010 makes provisions with regard to
agreements relating to natural resources which are relevant in ensuring optimum
exploration and exploitation of titanium in Kenya. Article 62 (1) (f) defines
public land to include all minerals and mineral oils as defined by law and
shall be held by the national government in trust for the people of Kenya and
administered by the National Land Commission.
In particular, Article 71 of the
Constitution provides that every transaction involving the grant of a right or
concession by or on behalf of any person including the national government to
another person for the exploration of any natural resource in Kenya shall be
subject to ratification by Parliament. Parliament is mandated to enact
legislation stipulating the classes of transactions subject to ratification.[24]
The Constitution safeguards the right to property which is relevant for
compulsory acquisition of private land in areas minerals such as titanium have
been found. It limits the power of the state to deprive a person of property,
interest or right in property of any description.[25] One
of the justifications for compulsory acquisition of land is acquisition of land
for public purpose or in public interest. Such acquisition must be followed by
prompt payment in full of just compensation and right of access to a court of
law if the party is aggrieved.
The Constitution binds the state, inter alia, to encourage public
participation in the management, protection and conservation of the
environment.[26]
Further, the state has a duty to ensure sustainable exploitation, utilisation,
management and conservation of the environment and natural resources and ensure
the equitable sharing of the accruing benefits. The government is also charged
to utilise the environment and natural resources for the benefit of the people
of Kenya. This last duty is relevant in protecting the interest of the
community in that it challenges the constitutionality of any attempt to use
natural resources such as coal for personal or non-public benefits.
The Act has a gross spectrum of provisions which abet the violations of
the individual rights. The Act specifically gives powers to the minister of the
Mines to award prospecting licences and have the final decision on determination
of any disputes related to the licences.[27]
Instances of forced land acquisitions have been character of the mining
trends in the regions in study. The Act requires private owners of lands on
which minerals have been found to “give consent”
The “consent” envisaged in the Act has not been explicitly defined and
therefore remains an abused power held by the duty bearers. It is widely
accepted that information as to the existence of certain minerals in
particulars areas may not be the common knowledge of the rural/local land
owners and therefore the prospectors only declare the existence of the minerals
to the land owners after they have acquired the land by coercion. The land
owners therefore end up selling the land at an undervalued price.
Points
of concerns in the Act are also in the broad definitions of terms and subject
matters. For instance, “mine” includes any open-cast mine, place, excavation or working whereon,
wherein or whereby any operation in connection with prospecting or mining is
carried on; while, “location” means an area in respect of which mining rights have been acquired
under a prospecting right or exclusive prospecting licence and which subsist in
accordance with the provisions of this Act;
c)
The Mining Bill 2014
The Mining Bill 2014 is a Bill for an Act of Parliament to govern
minerals exploration, prospecting, mining, processing and dealings in Kenya. A
cursory look at the Bill reveals that it does not address the local communities
interests in that it does not adequately provide for accruing benefits to the
community, neither does it offer measures to ensure that communities living in
mining zones are safeguarded from environmental hazards arising from titanium
exploration and exploitation. Additionally the Bill fails to address compensation
or resettlement and general land policies concerning land rich in minerals. The
Bill ought to regulate the titanium mining industry to ensure the proper and
efficient development and use of titanium resources for the benefit of the
people of Kwale and Kenya in general.
Employment
Exploring and Mining companies are required to submit a detailed
programme for the recruitment and training of citizens of Kenya.[28]
Preference in employment should be made in regard to Kenyan citizens, work on
replacing technical non-citizen employees with Kenyans.[29]
Ownership
In large scale mining, the government is to acquire 10% share capital.
Within four years after obtaining license, mining companies are supposed to
offload at least 20% of its equity at Local Stock Exchange.
In prospecting, mining, processing, refining and treatment operations,
preference should be given to local companies, services, materials and products
locally sourced.
4.2. Uganda
Mining activities in Uganda are controlled under the 2003 Mining Act and
the 2004 Mining Regulations. The Mining Act does not currently require any form
of consent or consultation with local communities prior to the application or
acquisition of an exploration license. While it does require a mining lease
applicant to negotiate a surface rights agreement prior to the granting of a
mining lease, it does not require this for an exploration license application.
Ultimately, the law falls well short of protecting free, prior, and informed
consent rights.[30]
The mining law specifies that regardless of land ownership, all minerals
are the property of the government.[31] While
any Ugandan entity can retain the right to search for and extract minerals, all
prospecting, exploration, and mining can only be carried out under an appropriate
license. In order to participate in mineral exploration, one must acquire a
prospecting license. The license is not confined to a specific area and gives
the holder a right to look for minerals and to demarcate it by planting
“beacons” to indicate to others the area is exclusively booked. A prospecting
license is not renewable and is valid for one year. A location license is
available to locally resident artisanal miners.
When more than one entity applies for mineral rights over the same land
Ugandan law requires that the first person who has marked out the land in
question be accorded priority.
When priority cannot be given, the commissioner of the Department of
Geological Survey and Mines (DGSM) has discretion to decide who will receive
priority.[32]
Entities intending to extract minerals for sale must apply for a mining
lease. The application to the commissioner must include:
·
a statement giving details of all known mineral
deposits in the area, as well as possible and probable ore reserves and mining
conditions;
·
a technological report on mining and processing
techniques to be used by the applicant;
·
a statement describing the program of proposed
developments and mining operations. This needs to include: the estimated
capacity of production and scale of operations, the estimated overall recovery
of the ore and mineral products, and the nature of the mineral products;
·
a report on the goods and services which can be
obtained in Uganda required for the mining operations, and proposals on the
procurement of those goods and services;
·
a statement on the employment and training of
Ugandan citizens; and
·
a business plan that forecasts capital investment,
operating costs and revenues, type and source of financing, and a financial
plan and capital structure.[33]
It is not until a company prepares to apply for a mining lease that
Uganda’s law requires proof of communication with the land owners or occupiers.
Applicants must state how many owners or lawful occupiers there are for the
area he or she intends to mine, include written proof that he or she has
reached an agreement with those owners or occupiers,[34] and
include written proof that he or she has an agreement, negotiated with broad
community support, which clearly quantifies compensation for disruption of the
land.[35]
The Mining Act requires the holder of mineral rights to exercise such
rights “reasonably” and in such a manner as not to adversely affect the
interests of any owner or occupier of the land. However, this has not been
interpreted by the courts and it is unclear what may be precisely involved in
complying with this provision. The act states that the land owner or lawful
occupier is entitled to demand either compensation for disturbance or a share
of royalties.[36]
The act also stipulates circumstances under which compensation may be paid to
owners or persons lawfully occupying land that is the subject of a mineral
right, for example for any crops, trees, buildings, etc., that may be damaged
in operations. However, the law specifically states that compensation will only
be paid “on demand” of the land owner and must be requested within one year of
the damage.[37]
Given the very limited knowledge of land owners as to their rights under the
mining law, it is likely that rightful compensation payments are neglected.
The Mining Act also stipulates how royalties must be allocated to the
various stakeholders—80 percent to the central government, 10 percent to the
district government, 7 percent to the sub county, and 3 percent to the “owners
or lawful occupiers of land subject to mineral rights.”[38]
Payments to the community can be quite difficult when there is no bank account
or legal entity recognized to receive the money.
5.0. THE MINING COMPANIES PRACTICES IN THE REGION
5.1. The East Africa Mining
East African Mining: Kaabong District East African Mining Ltd. (EAM), a
local subsidiary of East African Gold, incorporated in Jersey, holds
exploration licenses covering several hundred square miles of Kaabong district.[39] Since
June 2012, the junior mining company has been using various prospecting methods
to sample soil for gold in the parishes of Lois, Lopedo, Loyoro, Naikoret, and
Sokodu, which span four sub-counties in Kaabong.
From the investigations we carried out, it indicates that EAM did not
receive, or even seek, the permission or consent of the indigenous land owners
prior to undertaking exploration on their land.[40] We
interviewed 10 community members in the Kaabong parishes where EAM had been
exploring. All of those interviewed said that they were not consulted by EAM
about their planned activities prior to seeing them in their community,
extracting soil samples. In a phone interview with one of the Company’s
official who refused to be quoted, he acknowledged that the company’s
consultations had initially been limited and even nonexistent prior to
commencing exploration; however, the company worked to improve them over time.[41]
Community members, local government officials, and former employees
described EAM’s exploration process damaging gardens.[42] When
gardens were damaged by excavators or due to trenching, land owners received
some compensation. However, when sampling uprooted just a few crops, there was
no compensation.
EAM’s local labor practices were also problematic. This is especially
troubling as employment is often touted as the key community benefit to mining
operations. According to a former EAM employee, the company began recruiting
its 58 contractors on June 8, 2012. This included 40 survey team members, 8
scouting team members, 8 technical and administrative staff, and 2
housekeepers, in addition to its 6 management staff.[43]
All employees were employed casually without contracts and several
reported not receiving wages that they were owed. Mistreatment of employees where community
members narrated how they witnessed employees being fired, stripped of their
uniform and thereby forced to walk home naked.[44]
The management of EAM never furnished us any document detailing their
labour practices such as recruitment and work related policies.
5.2. Jan Mangal in Moroto District
Jan Mangal Ltd was incorporated in Uganda on May 5, 2011 by an Indian
businessman. Jan Mangal employees
arrived in Moroto together with machinery such as excavators and began
excavation work without any licence or paperwork on land where another company
by the name Mega, already possessed an exploration license.[45]
The community came to know about the license when Jan Mangal arrived.
The local people opposed it and it had to take the intervention of the central
government officials including at least three parliamentarians representing
Karamoja and Engola who brokered a solution in 2012.[46]
On July 20, the company purchased exploration rights from the DGSM to a
small plot of land on the Kenyan border in Rupa Sub-county. No meeting was held
with the locals to discuss the company’ plans hence raising tension between two
communities Matheniko and Tupeth.
Several people in Moroto noted that Jan Mangal’s operations became
increasingly reliant on the town speaker to deal with the local community and
smooth business relationships with
government authorities. The town speaker selected elders to go to Kampala to
meet with the company and central government officials. Some community members
felt these elders were not appropriate and not representative of the affected
communities, rather they were aligned to the speaker. According to two elders
who attended, they were each compensated UGSh 200,000 to 300,000 (US$80-120).
According to one community member, when the Kampala delegation returned, they
gathered the community and said they had accepted the company’s presence in
their area. In verbatim, this is what they said, “when investors come we must
accept them with one heart and never ridicule them.”
No meeting was ever initiated to disseminate information to the rest of
the community on what had been agreed.
The agreement was signed by the eight elders as a lease of 21 years with
effect from granting the mining lease.[47]
According to one of the community members- Achilla, in terms of benefits
to the community, Jan Mangal agreed to employ community members on the mine and
providing community members with soil for them to extract gold. So far this has
not been honoured. While others aver
that if anyone is benefitting from Jan Mangal’s mining, it is the sub-county
and municipal officials.
On CSR, the surface rights agreement states that the elders and
management of Jan Mangal will later sit to agree on activities that the
investor will do for them as part of social responsibility.
5.3. DAO Uganda- Moroto District
DAO Uganda Ltd Is a Ugandan limited liability company incorporated on
August 1, 2012 by two businessmen- Mohammed Aoun and Qasim Askari based in
Kuwait. It is a subsidiary of the Kuwait based DAO Group.
In Karamoja, DAO acquired two exploration licenses in February and june
2013, both in Rata village which is in area of conflict between Rupa and
Katekekile sub-counties of Moroto[48]
The company’s objectives in Moroto are to mine marble dimension stones-
large slabs with specific grain patterns- from the mountainside. Ultimately,
DAO plans to construct a factory to process and polish stones on site before
transporting to Mombasa-Kenya for export.[49]
According to local community members, DAO had at last three meetings in
2013 with community members to explain
their plans and try to determine who and how to compensate the genuine land
owners who will be affected.
On May 31, 2013, DAO concluded a memorandum of understanding with a
group that became known as the “Rata
Community surface right owners.” As per the agreement, the company agreed
to compensate the community members for the land.
As part from its intention to build a marble factory, some of their
proposed CSR activities include constructing a health centre, recognise and
encourage artisan miners and help their access to market, train and employ
local people, provide scholarships for needy, qualified secondary school
students, upgrade and maintain the road and provide water either via a borehole
or a well.
According to available data, 36 individuals received UGSh 2,320,000
(US$928) each; two received UGSh 600,000 (US$ 240) each and nine received UGSh
500,000 (US$ 200) each. The compensation for the Rata area marble mining
concession according to the agreement totalled UGSh 89, 220,000 (US$35,000). Is
the compensation just??
On environmental safety, DAO’s EIA misses some key aspects of the impact
of the mining activities on the affected community. Noise pollution and dust to
those who live nearby is a major concern.
5.4. Base Titanium
Base Titanium Limited is a wholly owned subsidiary Australian-listed
resources company, Base Resources Limited. It entered the Kenyan mining sector
by buying off the Kwale mineral sands project from Tiomin Resources Inc in 2010
at a fee of US$ 3 million.[50]
According to the management of Base Titanium, various phases of
resettlement have been undertaken since 2006, each conducted according to its
own Resettlement Action Plan (“RAP”) prepared and implemented in collaboration
with local committees including representatives of directly affected communities.
Compensation was paid for land, agricultural crops, forest trees,
structures and graves. Additionally requirements for livelihood replacement
strategies and replacement land were provided. These RAPs were prepared in
compliance with international best practice as stipulated in the IFC
Performance Standards.
Base Titanium is a signatory to the Extractive Industries Transparency
Initaitive – a global initiative to ensure transparency in payments between
resource companies and their host governments.
The management of Base Titanium provided us with various policies they
have put in place and these include; the employment policy, procurement and
supply policy, environment policy, communities policy and the health and safety
policy. We never had the opportunity to verify the efficacy of these policies.
i)
Community Engagement
Community liaison field offices have been established in Magaoni and
Kibwaga, population centres adjacent to the lease area.
Base has established a number of committees to act as an interface
between the Project and affected communities in various locations:
The Mining Project Liaison Committee acts as the primary channel of
communication to affected stakeholders in Msambweni District. It is supported
by the Likoni Liaison Committee providing links to communities near the Likoni
ship loading facility. The Kwale Liaison Committee to engage with communities
affected by the transport corridor between Ukunda and Likoni. Several
sub-committees have also been set up to manage community engagement with
affected communities in a more direct manner at the mine site (Access Road
Committee and Kibwaga Committee) and in Likoni (Kibuyuni Sub-Committee).
ii)
Community Programmes and Investment
Community Awareness Presentations – to provide affected communities with Project updates and planned
activities. Such presentations are conducted in schools and villages centres.
Community Health & Safety Presentations – an educational component to help communities understand risks
associated with Project activities and to advise on mitigating measures.
A major part of Base’s community initiatives is development. This includes:
Livelihood Restoration –
Each RAP has a built in livelihood restoration component to address impacts of
resettlement. Consultation with directly affected households are undertaken to
determine steps required to achieve the intended objectives. These include
agricultural programmes and alternative livelihood training such as small and
medium sized enterprises that can provide services to the Project.
Replacement Social Infrastructure – As resettlement leads to loss of community infrastructure such as
churches, mosques and schools, consultation is carried out in conjunction with
the MPLC to identify suitable alternative locations for replacement facilities.
It also considers the effects that resettlement has on host communities and
identifies the need to strengthen social amenities in the host area.
Community Health –
In consultation with district medical authorities, plans are being put in place
to promote public health initiatives with emphasis on prevention of HIV/AIDS,
malaria and other illnesses of major concern.
6.0. ZAMBIA CASE STUDY
7.0. RECOMMENDATIONS
Implement robust procedures to consult with local
people: decision making, built on pillars of access to
information, public participation and access to justice not only gives an
opportunity to the public to make informed
choices and influence decisions, but it also creates a stable and predictable investment for business.
Right to own land: Recognise
the communities in both countries as distinct indigenous peoples with rights to
their lands and recognise their land rights over land traditionally occupied
and use. Correct procedures on compulsory acquisition as laid down in the
legislative framework should be followed in a transparent manner in order to
obtain their free consent prior to approving any project affecting their lands.
Impact Assessments: There
is need for a stronger focus on community impact assessments that are mandated
under the Kenyan and Ugandan laws. There is also need for human rights impact
assessments.
Evictions: Both
governments should ensure that all land evictions or displacements are
implemented in accordance with international law particularly the UN Basic
Principles and Guidelines on Development-based Evictions and Displacement as
well as national legislations that provide for the right to property and
adequate compensation in cases of compulsory acquisition.
Adopt International Standards: Both governments should follow good international practice in the
management of natural resources. They should begin implementing internationally
recognised standards of transparency and accountability including the
requirements and recommendations of the Extractive Industries Transparency
Initiative (EITI).
Role of Parliament:
The Ugandan Parliament should amend the Land Act to make eligible broad
social representation in the composition of communal land associations in order
to address a major hurdle for registering certificates of customary ownership.
Amend the Mining Act to include a requirement for clear evidence of free
and informed consent from affected communities prior to granting an exploration
license and again prior to granting of mining leases.
The Kenyan Parliament should pass the Geology and Mining Bill 2014
currently being debated on the floor of the House with provisions of community
participation in the mining sector and revenue sharing from the proceeds of the
mines between the mining companies, the national government and the communities
where the minerals are found.
Role of the Church
The Church and other faith institutions clearly have a sacred role to
play in addressing the conflict and injustices to which mining can
contribute. As holders of moral
authority within communities, the clergy can support efforts by communities to
defend their rights and protect their livelihoods. They can help communities
engage effectively in dialogue and negotiations with companies to ensure
communities receive appropriate benefits. And they can use their influence to
hold companies and governments accountable when things go wrong. Churches, and
in particular the Catholic Church, should take up this responsibility in
partnership with their communities.
The Judiciary
Disputes arising from compensation and land rights should also have a
quick redress in the Land and Environment Court.
Mining Companies
There is need to put structures and frameworks in place to facilitate
consultations with the community members. The place of liaison and communal
engagement should be mainstreamed. In areas where land is communally owned, the
company should seek to engage the community in identifying solutions to health,
access to amenities, creation of alternative livelihoods and community labor
policies which will ensure mutual co existence and security to both the company
and community.
Their presence in the communities should be felt through meaningful
corporate social responsibility projects
Seek to reduce environmental pollution by using safe and cleans means of
mining i.e. by using sound and dust arresters.
There is need for companies to take health policy covers for the mine
workers
Valuation and compensation should not be conducted by internal company
experts but should be a documented process in which the government and
community negotiators should be involved.
8.0. ANNEXES
QUESTIONNAIRE
CATEGORIES
OF PEOPLE TO INTERVIEW:
CATEGORY
A: Government Officials
1. Type of
minerals/natural resources that exist in the country (particularly in the Karamoja
& Kwale area)
2. Contribution of
natural resources/extractive industry to
the economy (in terms of revenue and employment)
3. Legal &
Institutional framework in place to govern the industry (laws that
have been passed to govern the sector)
4. Challenges faced in
the industry and the proposals for reform if any
CATEGORY
B: Mining Companies
1. Period of time
engaged in the industry
2. Challenges in the
industry (external/internal)
3. Any contribution to
society in form of Corporate Social Responsibility (CSR). Is it structured,
predictable or ad hoc?
4. Is the environment
conducive for operation?
5. How do you describe
the relation between your company and the local community?
6. In your own assessment,
has the local community benefitted from your activities? If yes, how?
7. Any changes you can
propose to the industry? i.e. in the regulatory framework etc
CATEGORY
C: Church Leaders)
1. What is the role of
the church in management of natural resources/extractive industry?
2. Has the church been
involved in any form of advocacy in the management of the extractive industry?
3. What is your
position as regards to transparency in the extractive industry
4. Does the church
leadership have any role to play in ensuring all stakeholders are involved in
managing the extractive industry for the benefit of all?
5. What is the probable
cause of poverty in this area, taking into consideration of the wealthy of
Natural resources
6. In your opinion who
is not playing his/her among the stakeholders in ensuring benefit sharing?
7. Is there (in your
knowledge) existence of any benefit sharing policy between mining companies and
local people?
8. What role has church
played to ensure the locals benefit from these companies?
CATEGORY
D: Community Leaders/ CSOs
1. To what extent is
the community involved in the management of the extractive industry? Is there
any form of participation i.e. from contract negotiation, employment
opportunities etc
2. What benefit has
the extractive industry offered to the
community i.e. proceeds from the mines, CSR, employment opportunities
3. Which environmental
effects afflict the community as a result of the activities in the mines? If
nay, what is being done to remedy it?
4. Do communities get
(if any) enough compensation due to displacement or environmental effects
caused by mining?
5. What are the
challenges /obstacles that hinder compensation
or benefit sharing between
communities and mining companies(give options like: Lack of policy framework,
high illiteracy levels among the locals, lack of good will from mining
companies, politics etc)
CATEGORY
E: Displaced Persons
1. Did you directly loose
land/property?
2. Was the compensation
less than what you lost?
3. Were you informed of government plans to
compulsory acquire your land?
4. Were you given
enough time to relocate?
5. Were you given alternative
land or monetary compensation?
6. How long did it take
to be relocated?
7. Was the compensation
process fast?
8. Are you comfortable
in the new environment?
9. Are there any
challenges?
10. Did the mining company
involve you in discussing compensation and relocation costs?
11. How has your livelihood
improved since the mining company was set in the area?
12. Have you or your
close relative benefited either from employment or contracts from the mining
company?
[3] Fairventures Worldwide, “Feasibility Study—Dryland commodities
and livelihoods in Karamoja,” January 2013,
http://fairventures.org/wp-content/uploads/2013/01/UGANDA-Dryland-commodities-and-livelihoods-in-Karamojafeasibility-
study.pdf (accessed July
16, 2014).
[4] Ben Knighton, The Vitality of Karamojong Religion (Aldershot:
Ashgate Publishing Ltd., 2005), p. 24.
[5] “Waiting
for Karamoja to develop: Of Uganda’s uneven development,” Daily Monitor, June
20, 2012,
[6] Museveni
Explains Janet’s Posting,” New Vision, March 9, 2009, http://allafrica.com/stories/200903100006.html
(accessed July 16, 2014)
[7] Mrs. Janet K.
Museveni, “Karamoja Will Be Transformed Because It Is Part of Uganda,” undated,
http://janetmuseveni.com/karamoja/karamoja_transform.php (accessed
July 26, 2014).
[8] “Uganda: Making the most of security and
livelihood gains in Karamoja,” IRINnews, October 25, 2011,
http://www.irinnews.org/report/94059/uganda-making-the-most-of-security-and-livelihood-gains-in-karamoja
(accessed July 16, 2014).
[9] www.cdca.it/spip.php?article1707&lang=it
Accessed on July 26 2014
[10] Fairventures Worldwide, “Feasibility
Study,”
http://fairventures.org/wp-content/uploads/2013/01/UGANDA-Drylandcommodities-and-livelihoods-in-Karamoja-feasibility-study.pdf.
http://www.fao.org/fileadmin/user_upload/drought/docs/Karamoja%20Disaster%20Risk%20Reduction.pdf.
[13] “All peoples shall have
the right to their economic, social and cultural development with due regard to
their freedom and identity and in the equal enjoyment of the common heritage of
mankind,” UNDRIP, art. 26, 32(1); African [Banjul] Charter on Human and
Peoples’ Rights, adopted June 27, 1981, OAU Doc. CAB/LEG/67/3 rev. 5, 21 I.L.M.
58 (1982), entered into force October 21, 1986, art. 22.
[15] ACHPR,
“276/03 Center for Minority Rights Development (Kenya) and Minority Rights
Group International on behalf of Endorois Welfare Council v Kenya,” May 2009,
para. 227.
[16] United Nations Declaration on Development,
art. 2(3); ACHPR, “276/03 Center for Minority Rights Development (Kenya and
Minority Rights Group International on behalf of Endorois Welfare Council v Kenya,”
May 2009, paras. 278, 279.
[17] ACHPR,
“276/03 Center for Minority Rights Development (Kenya) and Minority Rights
Group International on behalf of Endorois Welfare Council v Kenya,” May 2009,
paras. 283 and 294. “Benefit sharing is vital both in relation to the right to
development and by extension the right to own property: Endorois,” para. 294.
[18] ACHPR,
“276/03 Center for Minority Rights Development (Kenya and Minority Rights Group
International on behalf of Endorois Welfare Council v Kenya,” May 2009, para.
283.
[19] http://www.kenyampya.com/index.php?county=Kwale
Accessed on July 26 2014
[20] This is a response obtained
from the questions we emailed the management of Base Titanium. We never had
time to verify the veracity of the information.
[21] Article 40 of the
Constitution of Kenya 2010
[22] Article 40 (3) (b) (i)
[23] Interview with a displaced resident
[24] Article 71(2) of the Constitution of Kenya
[25] Ibid Article 40(3)
[26] Ibid Article 69(1)(d)
[27] (2) Should any question arise as to whether any particular land is
excluded under this section, it shall be referred to the Minister, whose
decision shall be final and conclusive.
(3)
Where any consent required under subsection (1) is unreasonably withheld or the
Minister considers that any withholding of consent is contrary to the national
interest, the Minister may take such steps as are necessary under the Law
relating to the compulsory acquisition of land or rights or interests in land
to vest the land or area in question, or rights or interests in such land or
area, in the Government or on behalf of the Government; and thereafter such
land or area shall cease to be land excluded from prospecting and mining under
subsection (1).
[28] Section 44
[29] Section 45
[30] When a
company is ready to apply for a mining lease, then an environmental impact
assessment is legally required. Those often occur with some basic discussions
with the affected community but their consent is not specifically required.
[36] Art. 83 of
the Mining Act 2003
[37] Ibid…Art.82
[39] East African Gold PLC. is a private company
incorporated in 2011 primarily to explore and develop gold prospects in
Karamoja. See East African Gold website,
http://eastafricangold.com/ (accessed July 28 , 2014); EAM, “Project Brief for
Proposed Drilling & Trenching Operations in Lopedo, Loyoro,
Sokodu, Lois & Naukoret Gold Prospects in Kaabong District,”
October 2012, on file with Human Rights Watch, p. vi. It also
holds exploration licenses over other areas of Karamoja. See
also East African Gold PLC., “Statement of Particulars of
Incorporation,” Jersey Financial Services Commission, November 8,
2012; East African Gold PLC., “Certificate of Incorporation,”
November 9, 2012. Jersey, in the Channel Islands, is a “crown
dependency” and is therefore accountable to the queen, but
self-governing. It has a corporate tax rate of zero, except for
financial companies. For more on Jersey and its tax laws, see
Leah McGrath Goodman, “Inside the World’s Top Offshore Tax
Shelter,”
Newsweek.com, January 16, 2014, http://mag.newsweek.com/2014/01/17/jersey-taxes.html.
[40] Phone interview with the CEO of EAM, Dr. Tom Sawyer after writing
to him asking a series of questions related to our research. In the course of
the interview
[41] Phone
Interview with the Company Official
[42] “They entered my garden through the middle and took a soil sample
from there…. I asked them not to spoil my crops—a
mix
of maize and sorghum—but two or three were uprooted,” Interview with M.S.,
Lois, Kathile, Kaabong, July 6, 2014.
[44] This
assertion can’t be verified since the management of the company never responded
when we sent a request for clarification
[45] Interview
with local leaders and journalist
[46] Interview
with Mr. Anyuru Geoffrey – a Gulu based lawyer well versed with the agreement
[47] Surface Rights Agreement between Appatod, Lodonga Lokwangoria,
Engorlat, Apakerlem, Longara John, Ekamaripus, Thokan Loitakongu, Ocwee
Engoriangot, loput Etodongole, Elders of Rupa Sub-county and Katikekile
Sub-county in Moroto District
[48] See Spatia Dimesnion, “Uganda mining cadastremap” 2013: www.flexicadastre.com/uganda